Dublin, Sept. 18, 2023 (GLOBE NEWSWIRE) -- The "North America Van Market - Size, Share, COVID-19 Impact & Forecasts up to 2028" report has been added to ResearchAndMarkets.com's offering.
The North America Van Market is on an upward trajectory, projected to register a Compound Annual Growth Rate (CAGR) of 2.49%. Here are the key highlights and trends driving this growth:
Largest Segment by Fuel Type - BEV (Battery Electric Vehicles): While traditional diesel engines maintain their dominance in commercial usage, battery electric vans (BEV) are making significant inroads, becoming the largest fuel type in the light commercial van sales in North America. This shift is driven by the reliability and efficiency of BEVs in various commercial applications.
Fastest-growing Segment by Fuel Type - CNG (Compressed Natural Gas): Battery electric vans are the fastest-growing segment in North America. E-commerce companies in the US, in particular, are increasingly adopting battery vehicles for daily commutes and last-mile logistics operations, contributing to the rapid growth of this segment.
Largest Segment by Country - US: The United States leads the van market in North America, with a strong focus on carbon-free vehicles and incentives that encourage businesses to adopt zero-emission vans. The government's commitment to sustainability is driving growth in the electric van market.
Fastest-growing Segment by Country - Canada: Canada emerges as the fastest-growing commercial van market in North America. The country's thriving e-commerce sector is a significant driver, fueling short-term growth in the van market.
Key Market Trends - Hybrid and Electric Vehicles: Hybrid and electric vehicles are the dominant segment by engine type, as automakers increasingly prioritize electrification in their vehicle portfolios.
In 2020, North America saw 3.74 million light commercial vehicles (LCVs) sold, with pickup trucks accounting for 88% of those sales. However, rising petroleum prices, exacerbated by global events like the Russia-Ukraine conflict in 2022, are driving efforts to transition to electric vehicles (EVs) to reduce transportation costs. As a result, there's a growing momentum toward EV adoption across North America.
The region's significance in the market is reinforced by the rising demand for freight vehicles, even amid challenges like the COVID-19 pandemic, which caused a temporary decline in light commercial van production. However, once lockdowns were lifted, there was a surge in new orders for these vehicles.
To further boost light commercial van sales, the North American government has introduced measures to support domestic manufacturing, aiming to reduce vehicle prices. Companies like Hyundai Motor Group are investing billions in the United States to increase production, modernize facilities, and advance intelligent mobility solutions, aligning with President Joe Biden's stringent regulations for electric vehicles.
The United States stands out as a key market segment, driven by the need for alternative fuel sources due to depleting petroleum supplies and rising gasoline costs. The global rise in fuel prices, influenced by tax rates, underscores the cost-effectiveness of electric commercial vehicles (ECVs) with significantly lower operating costs compared to traditional internal combustion engine (ICE) vehicles.
Automakers worldwide are prioritizing vehicle portfolio electrification. Volvo, Subaru, Ford, GM, and others have ambitious plans for EV adoption, with some targeting electrification of their entire vehicle range within the next decade or two. This widespread commitment to electrification is set to reshape the automotive industry.
In the North American market, the electric van landscape is expanding, with the anticipated launch of 12 additional electric van models between 2020 and 2028. These include new offerings like the ELMS UD-1, Rivian R1A, and BrightDrop EV600, alongside electric variants of existing van model lines such as the Mercedes-Benz eSprinter and Ford Transit.
Competitive Landscape: The North America Van Market is fairly consolidated, with the top five companies - Chevrolet, Ford Motor Company, Mercedes-Benz Group, Nissan Motor Co., Ltd., and RAM - commanding 1491.02% of the market share, indicative of their strong presence and competition in this growing sector.
A selection of companies mentioned in this report includes
- Chevrolet
- Ford Motor Company
- Hyundai Motor Company
- Mercedes-Benz Group
- Nissan Motor Co., Ltd.
- RAM
- Toyota Motor Corporation
- Volkswagen Group
For more information about this report visit https://www.researchandmarkets.com/r/k3dr6p
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